NATIONAL THERMAL POWER CORPORATION LIMITED

MANUAL ON FUEL ACCOUNTING

November 2002

A. F. FERGUSON & Co. NEW DELHI

CONTENTS Process No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Process Introduction Receipt of Coal and Valuation at Non-pit head stations Bill processing for Coal at non pit-head stations Freight payment to Railways Reconciliation of payment with railways including match delivery of wagons Receipt of coal at pit-head stations Receipt of Oil Valuation of receipts at pit-head stations Bill processing for coal at pit-head stations Bill processing for oil Freight payment oil Receipt of gas and bill processing Issue of SIVs for consumption Physical verification of fuel stock Accounting of demurrages Processing PSL ( Priced Stores Ledger) Fuel Price Adjustment Accounting of Carpet Coal Appendices Appendix-I Appendix-II Appendix-III Norms for approval of handling and transit losses Procedure for Physical verification of Coal MIS reports 51 52 53 Page No 6 10 14 17 20 23 25 27 30 33 36 39 41 44 46 48 50

Manual on Fuel Accounting

1.00 1.01

Introduction

Fuel is the single largest item of expenditure for NTPC as a whole, as well as individually for the stations. Fuel is presently procured from Government Companies / Undertakings. The prices of some fuels are already decontrolled. It is essential to implement the provisions of Fuel Supply Agreements entered with the Fuel suppliers in their entirety. The tariff regulatory requirement with regard to the fuel information has to be complied with a data that is authentic and verifiable. The manual lays down the procedures for control & monitoring of fuel cost and also lays down procedures in the area of fuel accounting. The manual includes the activities performed by other departments (viz. Fuel Management group, Operations and Efficiency Department, etc).. The following types of fuel are used in a coal fired power plant: Coal (as primary fuel) HFO (as secondary fuel) LDO (as secondary fuel) HSD (as secondary fuel)

1.02

1.03

1.04

In a gas fired power plant, the following types of fuel are used: Gas (as primary fuel) Naphtha (as primary fuel) HSD (as primary fuel, in the absence of gas)

1.05

Fuel is sourced from three broad type of suppliers: Coal companies Oil companies Gas companies

1.06 1.07

NTPC coal fired stations are classified as pit-head and non pit-head based on their proximity to the coal mines. At pit-head stations, the bulk of the coal is transported by NTPC owned rakes on its own MGR system from the mines to the stations. In case of non pit-head stations, coal is transported by Railway owned rakes from the mines to the power stations. In the former case, accounting is simpler (because of no inward / outward diversion of rakes, demurrage, adjustments due to wagon replacement policy of the Railways etc.)

Manual on Fuel Accounting

Accounting Guidelines 1.08 The fuel cost to include all elements of expenditure that are directly related in bringing it to its present location and condition. The cost of fuel should include the following (as applicable): Cost of fuel / other costs as per the provisions of Fuel Supply Agreements (FSA) / invoice raised by the suppliers Adjustments on accounts of grade variations, moisture content, ash content etc Freight (in case of transportation by owned rakes through MGR, diesel used in locos) Operating and handling charges, commission charges paid to agencies Customs duty, port handling charges, ocean freight and insurance in case of imports Siding and Demurrage charges Differences on account of settlement of diverted rakes Labour deployed for unloading of coal Normal transit and handling losses Payment to outside agencies for sampling of coal Any other operating expenditure incurred in connection with transportation and handling of coal.

Coal receipt 1.09 The SRV should be provisionally valued on receipt by crediting provisional liability account. In case of diverted- in wagons, the credit is to be given to Liability account of Railways However, no payment is to be released from liability account of railways as this will be adjusted under match-delivery system of Railways. The receipt quantity is to be taken into stock at actuals as per the NTPC weighbridge in case of Non pit head station and as per the joint loading report in the case of pit head station The receipts are to be valued as follows: In case the rake is received from a linked mine, valuation is to be done based on the coal cost as per the coal rates of declared grade of the mines and freight rates (maintained in the system) as applicable. On receipt of Joint Analysis Report, necessary adjustment shall be carried out. In case coal is received from any other mine, an average rate is to be fixed for the coal and freight cost for the purpose of provisional valuation and PSL processing.

1.10

Manual on Fuel Accounting

1.11

At the time of coal and freight bill processing, the full amount of the bill is to be credited to the coal-company and railways. PSL is to be updated for the loss in transit. (The system to keep a record of the loss in Transit for MIS purposes). The proportionate amount on the wagons diverted out shall be debited to Claims on Railways Account. The grade of coal determined as per the joint analysis report shall be basis for making adjustment to the provisional valuation and for payment as well. In case any consequential adjustment is carried out for excessive moisture, ash content / over-sized stones etc. the same is to be adjusted in the PSL as and when admitted by the coal companies. At the time of settlement of diverted outward rakes/ wagons with the diverted inward rakes/ wagons, PSL is to be adjusted for the differential valuation.

1.12

1.13

Oil receipt 1.14 The SRV is to be provisionally valued on receipt by crediting the provisional liability account based on the purchase order details and the approved freight rates. On receipt of the bill and at the time of bill processing, difference if any between the bill processed amount and the provisional amount is to be adjusted in the PSL. In the case of receipt of oil by rail, the differential valuation on account of diverted/disconnected wagons- the accounting is the same as the guideline provided in the case of coal.

1.15 1.16

Gas receipt 1.17 The SRV is to be provisionally valued on receipt by crediting provisional liability account based on the price list and actual quality of gas received. On bill processing, difference if any between bill processing amount and the provisional amount is to be adjusted in the PSL.

Valuation of issues 1.18 The valuation of issues (SIVs) is to be based on the weighted average rate. The handling losses are to be dealt as per the guidelines provided in this respect (Appendix I).

Carpet Coal 1.19 The carpet coal should be charged off to the coal consumption account. Loss on account of carpet coal during the pre-commissioning period, should be retained as stock of coal and should be charged off to consumption in the year of operation of the unit.

Manual on Fuel Accounting

Demurrage 1.20 Demurrage is to be accounted for on receipt of the bill from the railways. The claims waived are to be accounted for in the year of receipt of the waival.

Reconciliation and resolution of disputes 1.21 1.22 Reconciliation with the fuel suppliers and railways is to be carried out on a quarterly basis. Disputes, if any, shall be resolved as per the provisions of dispute resolution mechanism provided in FSA / agreement with the Railways.

Reports and MIS 1.23 A quarterly report on fuel as per appendix-III shall be submitted by site to corporate finance-commercial-fuel group.

Manual on Fuel Accounting

Process: Receipt of Coal at Non-pithead Stations Process brief

Process no.: 01

This process lays down the procedure for receipt of coal at non-pithead stations. As per the FSA with the coal companies the coal receipts are to be accounted for based on the following: In case wagons are weighed at the point of dispatch, that weight is valid for bill processing. In case the wagons are not weighed at the time of dispatch, then the weight as recorded at NTPCs weighbridge is recognised as valid till such time as the suppliers weigh-bridge is made operational. In case both the weighment systems are not operational, weighment based on the dispatches during the last 7 days/ as per the provisions of the FSA is to be adopted

On receipt of coal it should be ensured by Fuel Management group that all rakes and wagons received are unloaded/emptied completely and correctly recorded and accounted for. Departments/ sections involved in the process Fuel Management Group. F& A department

Procedure: Receipt of Coal (Non-pithead) S. No 1 Person Responsible Record the time of arrival of the Fuel rake and enter the following details Management in the Rake Siding Register Group Rake number Date and time of placement of rake Number of wagons On arrival of rakes, allot a (continuous) rake serial number in the register (starting from 1st April of the year) 2 Record the source of the rake and Fuel details of the wagons based on the Management As and when Activity Frequency As when and Remarks

Manual on Fuel Accounting

S. No

Person Responsible wagon slip/ Guard Report and Group physical inspection of the wagons for each rake (wagons details to include wagon number, wagon type, gross / tare / net weight, etc.) in a Wagon Unloading Register. Carry out a visual inspection of the Fuel wagons to ensure that each wagon is Management reasonably full. Group Unload coal. Carry out a visual inspection to verify that all the wagons are emptied at the time of leaving the coal yard. Enter the weight as per the weighbridge in the unloading register. In case the weigh bridge is not operational, consider the weighment as per the wagon slip/ Guard Report. In the absence of even the wagon slip/ Guard Report, weight as per the wagon permissible carrying capacity is to be considered, provisionally. Record the time of exit of the rake Fuel from the premises of NTPC and Management enter the same in the Rake Siding Group Register (RSR). In case of delays, record reasons for the same in the RSR. Enter the details of the rake received and wagons unloaded as per the Rake Siding Register and Wagon Unloading Register in the Coal Receipt Register (CRR). Generate a checklist of data entry and tally the same with the manual register to ensure accuracy of the data entered. File the checklist - date wise.

Activity

Frequency

Remarks

As and when

Weighbridge may be interfaced with the system to enter the actual weight.

As and when

Fuel Management Group

As and when

CRR to be maintained in the system.

Manual on Fuel Accounting

S. No

Activity Generate a copy of the CRR for the day showing the details of coal received. Generate a SRV (source-wise and invoice wise) for the quantity of coal received.

Person Responsible

Frequency

Remarks

Concerned official (as per IWA) Forward a copy of the SRV along Fuel with the copy of Coal Receipt Management Register to the F&A Deptt Group (Commercial Section). Value the SRV provisionally (as per F&A Deptt the accounting entries provided) (Commercial Section) Approve the SRV.

Same day

Same day

Documents - Records Document Document Title Type Rake Siding Register R Wagon Unloading register R Coal Receipt Register R Monthly Summary of O receipts Stores Receipt Voucher I (SRV) I Input O- Output Accounting Entries: 1. Purchase of coal A/c Fuel liability A/c - coal company (for identified wagons) Fuel liability A/c railways (for diverted in wagons) Freight liability A/c - railways (provisional) Purchase of coal A/c IT Deduction SD/ RM Contractors Control A/c Dr Cr Cr Cr Dr Cr Cr Cr Format FM/01 FM/02 FM/03 Frequency As and when As and when Daily Month end Daily Distribution

FMG /F&A F&A F&A

R- Register/ Record

2.

Manual on Fuel Accounting

(in case of unloading and/ other charges payable as per contract entered into with the contractor)

Manual on Fuel Accounting

Process: Bill processing for coal Non pit head Process brief

Process No.: 02

This process deals with processing of bills for coal at the non pit head stations. Bill processing for coal is governed by the FSA entered into with the coal companies. All costs including adjustments/ deductions on account of failure to meet quantity obligation, excessive moisture, grade variation etc. are to be as per the provisions of the FSA or any other agreement in force. While discharging this function, it is to be ensured that: The rakes/ wagons billed for have been received and recorded in the CRR. In case the rakes/ wagons indicated in the bill are not received then intimate the details of the same to the FMG for raising the claims on railways, if the related claims raised have not already received from the FMG The correctness and accuracy of the bill - as per the coal price notification/ FSA All adjustments towards grade variations, excess moisture, ash content, stones and foreign material, incentives & disincentives relating to the quantitative targets have been made as per the provisions of FSA. Correct accounting entries have been passed for the receipts and missing wagons and liability to the coal company/ railways

Departments / sections involved in the process F&A Deptt (Commercial Section) Fuel Management Group Procedure: Bill processing for coal Non pit head S.No 1 Person Responsible Enter the details of the rake received Fuel (wagon wise) as per the coal Management suppliers invoice / RR in the system. Group Link the invoice received from the coal company with the rakes received based on the following parameters: The mine / loading point that has raised the invoice The supply date for coal Rake/ Wagon details Activity Frequency As and when Remarks

Generate a report on the following:

Manual on Fuel Accounting

10

S.No

Activity Difference between the invoiced weight and the actual weight as per NTPCs weigh bridge Rakes/ wagons not received

Person Responsible

Frequency

Remarks

In case any wagon has been diverted by railway in respect of the invoice received, raise a claim on the railways Forward the verified bills to the F&A department for bill processing and payment. Receive the invoice from the FMG F&A (Commercial) and verify the following: Grade of coal billed is as per the declared grade. Make adjustments in case of grade differences based on the joint analysis report Coal rates are as per the notification issued by the Coal company / provisions of the FSA The invoice has been raised correctly and that all the elements of the invoice are as per the FSA / any other agreement in force Arithmetical accuracy of the bill Adjustments, if any, to be made from the bill on account of excessive moisture, stones and foreign materials, incentives/ disincentives (on account of offtake quantities), etc. have been made Receive the joint grade analysis F&A report from the Chemistry Department/ department/ FMG as the case may be FMG and enter the details of the grade in the system. In case of grade differences, obtain the debit/ credit note from the coal company for the same

Within day receipt

2 The system to of facilitate bill processing by computing the bill amount based on the coal bill and joint analysis report entered into the system by the FMG and the master data of rates and other terms and conditions as per the agreement.

As when

and .

Manual on Fuel Accounting

11

S.No 4

Person Responsible Generate a Purchase Journal Voucher F&A Deptt (PJV) for processing the bill for the (Commercial amount payable to the supplier. Section) Indicate the due date of payment on the BPV.

Activity

Frequency Same day

Remarks

Approve both the PJV and the BPV and forward the same to the competent authority for authorizations Verify the PJV and the BPV, approve Concerned Same day the same in the system and the hard official as per copies. IWA F&A Deptt Forward the BPV along with a copy (Commercial of the PJV to the cash and bank Section) section for release the payment. File a copy of the following: Section Concerned PJV along with a copy of the SRV and supplier invoice in the PJV file - PJV serial number wise JV, BPV and suppliers invoice in the suppliers file. For releasing the payment to the Cash and supplier follow the procedure as per Bank section the Cash and Bank , Generate a report on the Joint F&A Analysis Reports pending and Department forward a copy of the same to the (Commercial FMG/ Chemistry Deptt to take the Section) necessary follow-up action with the officials concerned

Same day

7 8

As and when Month-end

Documents - Records Document Title Invoices Bank Payment Voucher Stores Receipt Voucher Document Type I O I Format Frequency As and when As and when As and when Distribution

Manual on Fuel Accounting

12

Document Title Suppliers Ledger Purchase Journal Voucher Freight Ledger Dr/Cr Note for grade variance Accounting entries

Document Type R O R R

Format FM/04 FM/05 FM/06

Frequency As and when As and when As and when Month-end

Distribution

F&A, Chemistry

FMG,

1. Fuel Liability A/c (reversal of provisional valuation to the extent wagons are received and connected to the bill) Dr Claims on railways A/c (to the extent wagons have not been received but invoiced for) Dr Purchase of coal A/c (difference between provisional valuation and invoice value for the wagons received and connected to the bill) Dr/ Cr Fuel Supplier Control A/c (for the total invoice value) Cr 2. Fuel Supplier Control A/c Purchase of Coal A/c Dr/ Cr Cr/ Dr

(adjustments for moisture, stones, foreign materials, incentives/ disincentives on quantity off take, etc. on acceptance of the same by the coal company) 3. Fuel Supplier Control A/c Claims on Railways Purchase of Coal A/c Dr/ Cr Cr/ Dr Cr/ Dr

(adjustments for grade variations on the basis of the joint analysis report received subsequently i.e. after passing of the entry as per 1 above)

Manual on Fuel Accounting

13

Process: Freight Payment to railways Process brief

Process no.: 03

This process lays down the procedure for payment of freight to Railways. While discharging this function, it is to ensured that: The quantity invoiced for has actually been received by NTPC Arithmetical accuracy of the bill Correct accounting entries have been passed

Departments / sections involved in the process F&A Deptt (Commercial Section) / T&CC office / RHQ / FMG

Procedure : Freight Payment to railways S.No 1 2 Activity Receive the invoice & RR from railways Person Frequency Remarks Responsible F&A DepttAs and T&CC Office/ when RHQ F&A DepttSame day Follow the T&CC Office/ Cash & Bank / RHQ Books manual As when and

Generate a BPV for making payment (under WOC) to the railways and generate an inter unit advice on the unit concerned Receive the following documents Fuel Management from the railways: Group Freight bill Dispatch Note (containing wagon wise details of loading-Gross weight, Tare weight, Net weight, Under loading, Chargeable weight, Over loading, Panel loading etc.) Railway Receipt Enter the bill details i.e. the wagon type, wagon wise loading details, freight charged etc. in the system. In case any rake/ wagon diverted by railways in respect of the bill received, raise the claim on railways

Manual on Fuel Accounting

14

S.No

Activity as per railway claim procedure.

Person Responsible

Frequency

Remarks

Approve the bill and forward it to the F&A Deptt (Commercial section). In case of diverted out rake/ wagons record the details of the same on the bill. Receive the Inter Unit Advice from F&A Deptt the T&CC Office / RHQ in respect of (Commercial the freight payment to railways Section) (under the WOC system) Verify that the correct wagon type has been considered for calculation of the freight. Calculate the total freight payable to the Railways at applicable freight rates. Verify that the Total freight as arrived at above is equal to total freight invoiced by the Railways. Generate a JV to account for the IUA Follow the procedure given in manual on Books Section In case any difference in the freight F&A Deptt calculations intimate the same to the (Commercial FMG for lodging the claim on Section) railways. (The claims to be adjusted in the PSL only on acceptance of the claims by the railways) Generate and approve PJV in the F&A Deptt system and forward the same to the (Commercial competent authority for approvals Section) Verify the JV. Authorise the hard Concerned copies and update the system. official as per IWA

As when

and

Within days receipt advice

2 System shall of assist in the of bill processing based on the details entered and the master data already entered in the system

Within days receipt invoice

2 of of

Within days receipt invoice

2 of of

Manual on Fuel Accounting

15

Documents Records Document Title Purchase Journal Voucher Detailed working of Freight Accounting Entries: 1. Freight Liability A/c (for reversal of the provisional freight liability to the extent wagons received and connected to the freight bill received from railways) Dr Claims on railways (to the extent wagons not received but invoiced by the railways and paid by the T&CC offices) Dr Purchase of coal A/c (for the difference between the provisional freight and the freight bill received from railways relating to the wagons received and connected to the bill) Dr/ Cr Inter Unit A/C T&CC office,/ RHQ Cr Note : In case of direct payment to Railways then the credit would be given to the Railways Freight Control A/c Document Type I O Frequency As and when As and when Format Distribution

Manual on Fuel Accounting

16

Process: Reconciliation of Payments & Wagons Process brief

Process no.: 04

This process deals with reconciliation of accounts with the railways and reconciliation with respect to the rakes diverted in / out. Rakes are diverted in / out by railways on account of various reasons such as wagons becoming sick en route, urgency of fuel at a different power station etc. Railways follow the policy of wagon to wagon replacement i.e. a wagon of coal diverted out is replaced by another wagon of coal, irrespective of the quality of coal diverted out. Departments / sections involved in the process F&A Deptt (Commercial Section)/ FMG

Procedure : Reconciliation with railways - rakes diverted in / out S.No 1 Person Responsible Ascertain the rakes diverted in / out Fuel Management based on the following documents: Group Invoices of coal supplier/ freight bill received from the railways for rakes/ wagons supplied Coal receipt register for rakes/ wagons received Generate the following statements: Rakes / wagons received and related bills received Rakes / wagons not received but related bills received (i.e. rakes diverted out). The coal and freight cost of such cases should have been charged to Railway Claims Diverted out wagons (Freight and Coal) Rakes / wagons received but related bills not received (i.e. rakes diverted in). File a claim with the railways for the Activity Frequency At the month-end Remarks

Fuel

As

and

Manual on Fuel Accounting

17

S.No

Activity rakes diverted out towards cost of coal and the freight component as well. Discuss the above with the concerned railway officer in the periodic meetings held Reconcile the wagons diverted out/ in and obtain signatures of the concerned railway officer in the statement showing the rakes diverted in/out and the net status Prepare and accept the Matched Delivery Statement with the railways. Ensure that the wagons of comparable carrying capacity and type only are match delivered.

Person Responsible Management Group

Frequency when

Remarks

3.

Forward a copy of the above statements to the F&A Deptt (Commercial section) Generate a Purchase Journal Voucher F&A Deptt As (based on the above statements) to Commercial when account for the reversal of diverted Section in/ out wagons (as per the accounting entries provided) Verify the JV and authorize the same Official both in the system and the hard copy. concerned Follow the procedure given in as per IWA manual on Books Section.

and

Documents Records Document Title Purchase Journal Voucher Match Deliver Statement Document Type O R Format Frequency As and when FM/06 As and when Railways Distribution

Manual on Fuel Accounting

18

Accounting Entries Provisional Liability - Freight A/c Dr (for the wagons diverted in and adjusted by railways under the Match Delivery statement) Provisional Liability Coal cost A/c Dr (for the wagons diverted in and adjusted by railways under the Match Delivery statement) Freight Coal Cr (for the cost of coal relating to the diverted out wagons and adjusted by the railways under the Match Delivery Statement) Railway Claim Freight Cr (for the cost of coal relating to the diverted out wagons and adjusted by the railways under the Match Delivery Statement) Purchase of coal A/c / Freight Control A/c railways Dr/ Cr (for the differential amount as per the agreement with the railways as to the freight payable on the wagons diverted in/out)

Manual on Fuel Accounting

19

Process : Receipt of coal at Pithead Stations: Process brief

Process No. : 05

This process describes the procedure for receipt of coal at the pit-head stations. At the pit head stations coal is generally received through NTPCs wagons (Merry-GoRound MGR system). The source of coal (i.e. the mine) is generally identified to NTPC at the time of arrival of the rakes. The quality of coal is determined based on the joint sampling analysis. The joint loading report is sent along with the invoice for the coal despatched. On receipt of coal ensure the following: Visual inspection of the rakes has been carried out before despatch All wagons received have been unloaded and accounted for The rake wise details of coal unloaded have been correctly recorded in the system

Departments/ sections involved in the process Fuel Management Group

Procedure: Receipt of coal (Pithead) S. No 1 Person Responsible Inspect the loading and weighment of NTPC the rake at the loading point and representative authorise the joint loading report deputed at the mine Record the time of arrival of the rake Shift Engineer and enter the following in a Coal Siding Register: Rake number Date and time of arrival of rake Number of wagons Mine from which the rake has arrived Activity Frequency Before despatch of the rake As when and Remarks

Allot a serial number to the rake (starting from 0:00 midnight beginning of every year) Carry out a visual inspection of the wagons to ensure the following:

FMG

As when

and

Manual on Fuel Accounting

20

S. No 4 5

Activity each wagon is reasonably full and contains no boulders etc. all rakes are emptied at the time of leaving the coal yard.

Person Responsible

Frequency

Remarks

Record the time of exit of the rake from the premises of NTPC and enter the same in the Coal Siding Register Enter the details of the Coal Siding Register in the system Receive the joint loading report. Check that the number of rakes / wagons received as per the Coal Siding Register are the same as per the Joint Loading report Enter the following details of the joint loading report against the rake number in the system: Rake No. Source Date of despatch Wagon wise weight details (1) Based on the above entries maintain a coal receipt register (CRR) in the system. (Generate a checklist of data entry and tally the same with the manual register to ensure accuracy of the data. File the checklist - date wise.) (2) Generate a copy of the CRR for the day showing the details of the coal received. Generate a SRV for each loading point for the total quantity of coal received during the day. Forward the SRV to the competent authority for approvals

FMG FMG

As when

and

Same day

FMG

Same day

Concerned

Manual on Fuel Accounting

21

S. No 7

Activity Verify and authorize the SRV. Forward a copy of the authorised SRV along with a copy of the Coal Receipt Register and invoice to the F&A Deptt (Commercial Section).

Person Responsible Official as per IWA FMG

Frequency

Remarks

Next day

Documents - Records Document Title Monthly Summary of receipts CRR Coal siding register Stores Receipt Voucher (SRV) Document Type O R R I Format Frequency Month end FM/03 FM/01 Daily Daily Daily Distribution F&A Deptt F&A Deptt F&A Deptt

Manual on Fuel Accounting

22

Process: Receipt of oil Process brief

Process no.: 06

This process deals with the receipt of oil (HFO / HSD etc.). The Operations department/ Fuel Oil Handling Deptt (FOHD) handles all the activities relating to receipt of oil. On receipt of oil ensure the following: Seals on the tankers received are intact Unloading is done in the presence of the relevant officials of the security staff (CISF) to ensure that all rakes/tankers are fully unloaded Quantity received is measured (by dip measurement etc.) to ensure receipt of material is as per the despatch documents All rakes/ tankers received are correctly recorded in the system

Departments / sections involved in the process Operations department/ FOHD Stores CISF

Procedure: Receipt of oil S. No 1 Person Responsible In case of transportation of oil by Operations / truck, enter LR details in the system Stores/ FOHD and update the LR register (oil type wise) In case of transportation by rail, enter the following details in the Rake Siding Register: Date Rake number (starting from the 1st of April every year) Time in Activity Frequency As when and Remarks

Ensure that the seal on the tanker is intact Verify the quantity received by taking Operations / dip measurement in the presence of Stores / CISF representatives of Stores and CISF personnel.

Same day

Manual on Fuel Accounting

23

S. No

Activity Prepare an Unloading Report (tanker wise and rake wise) for the total quantity of material received. Serially number the unloading report Discharge the contents of the wagon / truck in NTPC tanks. Verify that the wagon / truck tanker is emptied and affix the stamp and sign the Unloading report Enter the details of the rake /tanker received and unloaded as per the Rake Siding Register and Unloading Register in the system to update the Oil Receipt Register (ORR). Generate a checklist of data entry and tally the same with the manual register to ensure accuracy of the data. File the checklist- date wise. Generate a SRV for each consignment of oil received and obtain approvals of the competent authority. Forward a copy of the SRV along with a copy of the unloading report to F&A Deptt (Commercial) section

Person Responsible

Frequency

Remarks

Operations/ FOHD CISF Operations/ FOHD

Same day

Documents - Records Document Title SRV Unloading report Oil Receipt Register Document Type I O R Format Frequency As and when As and when As and when Distribution

FM/07

Manual on Fuel Accounting

24

Process: Valuation of Coal Receipts at pit head stations Process brief

Process No.: 07

This process deals with the procedure to be adopted for valuation of receipts of fuel. Departments / sections involved in the process Finance and Accounts department O& E (Commercial) / FMG

Valuation of receipts The cost to include all elements of expenditure that are directly related to bringing it to its present location and condition. The cost of fuel would include the following: Cost of fuel payable to suppliers as per FSA/ invoices raised by the suppliers Freight to Railways or transporters and in case of transportation by MGR through own rakes, then diesel used in locos Siding and Demurrage charges Adjustment on account of settlement of diverted rakes/ disconnected wagons Adjustment on account of ash content, moisture, grade variations, stones and foreign materials Normal transit and handling losses Labour deployed for unloading of coal Any other operating expenses incurred in connection with procurement, transportation and handling of fuel

Coal receipt The SRV should be provisionally valued on receipt by crediting provisional liability account. In case of diverted in ward rakes/ wagons, the credit shall be given to Liability to Railways, However, no payment is to be released to Railways from the such liability account , as the same shall be adjusted under match delivery system of Railways In case of wagons received through railways, the receipt quantity to be taken, as per the actual measurement, as per the NTPC weigh-bridge. In case of receipt through MGR , the receipt quantity shall be as per the joint loading report. The receipt would be valued as follows: In case the rake is received from the linked mine, valuation to be done based on the rates applicable to declared grade as per the coal rates and freight rates maintained (wherever applicable) in the system

Manual on Fuel Accounting

25

In case coal is received from any other mine, a provisional rate may be adopted for provisional valuation, subject to adjustment when the invoice is received At the time of coal and freight bill processing, the system would work out the transit loss based on the details entered in the system. The full amount of the bill to be credited to the coal-company in case of rakes received through railways. A record of the quantity difference and the loss in Transit to be maintained for MIS purposes. Transit and Handling losses shall be dealt as per the policy provided in Appendix I.

The quality of coal received is taken as per the joint sampling report and the PSL is adjusted accordingly. Deductions made for excessive moisture/ ash content, stones etc. to be adjusted in the PSL as and when admitted by the coal company. At the time of coal and freight bill processing, cost of diverted out rakes (missing wagons) would be worked out and debited to the Claims-on-Railways Account. At the time of settlement of diverted outward rakes/ wagons with the diverted inward rakes/ wagons, PSL would be adjusted for the differential valuation. The system would keep record of the implications on account of match delivery the reasons thereof (i.e. on account of quantity/ quality) for MIS purposes only. Documents - Records Document Title Stores Receipt Voucher Receipt JV Outstanding wagons diverted in Outstanding wagons diverted out Match delivery statement on wagon settlement Document Type I I R R R FM/08 FM/09 FM/MIR/02 Format Frequency As and when As and when Monthly Monthly Monthly Distribution F&A (Commercial Section) F&A (Commercial Section) F&A (Commercial Section) F&A (Commercial Section) F&A (Commercial Section) Deptt Deptt Deptt Deptt Deptt

Manual on Fuel Accounting

26

Process: Coal Bill processing at pit- head stations

Process brief

Process No.: 08

This process lays down the procedure for processing of bills for coal received at pit head stations. The bill is to be processed on the basis of the declared grade of the mine. In case of any grade variations as per the Joint analysis Report (JAR) an adjustment for the same is to be made from the next invoice Process the bills as per the provisions of FSA and ensure the following: Arithmetical accuracy of the bill All adjustments (grade variations, excess moisture, ash content, stones and foreign materials, incentives/ disincentives on the quantity off take, etc.) have been made

Departments / sections involved in the process F&A Deptt (Commercial Section) FMG/ Chemistry Department

Procedure: Bill processing for coal (pit head) S.No 1 Person Responsible Enter the details of the rake/ wagon Fuel as per coal supplier bill in the system. Management Group Link the invoice with the rake received and recorded in the wagon unloaded register based on the following: The mine / loading point which has raised the invoice The supply date for coal Activity Frequency Upon receipt bill of Remarks

Generate a report highlighting the following aspects: Rake/ wagon not received (if any).

Forward the verified bills to the F&A department for bill processing and payment along with instructions for any adjustment to be made as per the
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S.No 2 3

Activity

Person Responsible

Frequency

Remarks

provisions of the FSA. Forward the joint grade analysis Chemistry report to the FMG and F&A Deptt. Department Receive the invoice and verify the F&A Department following: (Commercial Grade of coal billed is as per the Section) declared grade Make recovery in case of any differences, if any, as per the joint sampling report Coal rates are as per the notification issued by the coal company and as per PSL The invoice has been raised correctly and that all the elements of the invoice (basic price, Sales tax, transportation charges, royalty etc.) are as per the agreement / any other agreement in force Arithmetical accuracy of the bill and calculations Deductions, if any, to be made from the bill such as on account of excessive moisture, ash content, stones and other foreign matter, incentives/ disincentives on account of quantity off take Generate a Purchase Journal Voucher F&A (PJV) for processing the bill (as per Department the accounting entries provided) and (Commercial the Bank payment voucher (BPV) for Section) the amount payable to the supplier. Indicate the due date of payment on the BPV. Same day The system would facilitate bill processing by computing the bill amount based on the coal bill and joint sampling report and the master data of rates and other terms and conditions as per the agreement.

Same day

Sign the PJV and the BPV and send them to the concerned official authorised to sign as per IWA. Attach the PJV with the BPV. Verify the PJV and BPV, authorise Concerned Same day the hard copies and update the official as per

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S.No system.

Activity

Person Responsible IWA

Frequency

Remarks

Forward a copy of the BPV along with a copy PJV to the cash and bank section to release of payment. 6 File a copy of the PJV along with a F&A Same day copy of SRV and supplier bills in the Department JV file (JV serial number wise). (Commercial Section) Payment of the BPV - follow the cash Cash and Due date and bank system. Bank section

Documents - Records Document Title Invoice of coal Companies Bank Payment Voucher Stores Receipt Voucher Purchase Journal Voucher Accounting entries On receipt of Bill Fuel Liability A/c Fuel Supplier Control A/c Purchase of Coal A/c Dr Cr Dr/Cr Document Type I I I I Frequency As and when As and when As and when As and when Distribution

On receipt of Joint analysis Report (JAR) to account for the differences, if any Purchase of Coal A/c Fuel Supplier Control A/c Dr/Cr Cr/Dr

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Process: Bill processing for oil Process brief

Process no.: 09

This process deals with the bill processing for oil (HFO / HSD etc.) purchased from oil companies. On processing the bill ensure the following: The bill is processed for the actual quantity of oil received as per the terms and conditions of the PO / contract. In case oil stock is maintained by the oil companies at NTPC station, the quantity consumed will be the basis for payment, as per the relevant provisions of the contract with the oil companies Deductions/ adjustments have been made as required, such as on account of advance paid

Departments / sections involved in the process O & E Department Fuel Oil Handling Department F&A (Commercial) section

Procedure: Bill processing for oil S. No 1 Person Responsible Receive the invoice for oil supply and Operations enter the details of the oil received as per the invoice in the system. Link the invoice with the SRV Generate a report on the following: Difference in quantity as per invoice and the actual receipt Rake/ wagon not received Difference if any between the rates as prevailing at the time of dispatch and as per the invoice Activity Frequency As and when Remarks

Forward the verified bills to the F&A department for bill processing and payment along with the instructions, if any to the F&A dept. for any deductions to be made.

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S. No

Activity

Person Responsible

Frequency

Remarks

In case oil stock is maintained by oil the companies at NTPC, then forward the oil quantity consumed by the station jointly signed by NTPC official and oil company official along with the bill for making payment. Receive the verified bills and check/ F&A Deptt ensure the following to process the (Commercial Section) bill: SRV has been approved by the competent authority and is complete in all respects Bill amount is as per the value of the SRV (System would calculate the purchase value on the basis of prevailing rates and the quantity received as per the SRV) Ascertain the advance amount to be adjusted if any as per the PO terms and make the necessary adjustment. (The system should provide the details of the advance amount outstanding against the party) Make other deduction(s) if any as per the terms of the PO and instructions given on the SRV by the Operations department. In case freight and any other incidental charges are to be borne by NTPC, and the actual amounts of freight and other incidental charges are not known, use estimated/ predetermined rates as per the accounting policy. (This would ensure valuation of oil on a timely basis). Consequently an adjustment shall be carried out when actual freight bills are received Generate a Purchase Journal Voucher F&A Deptt (PJV) for passing the bill and two (Commercial

Within 1 day of receipt of invoice by F&A (Commercial)

Based on the unloading details entered and the master data entered in the system, the system shall calculate the net amount payable to the oil company to facilitate the bill processing

Within 1 day of receipt of

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S. No

Person Responsible copies of a Bank payment voucher Section) (BPV) for the amount payable to the supplier/ transporter. Indicate the due date of payment on the BPV. Sign the PJV and the BPV and forward them to the competent authority for approvals along with the SRV and the suppliers bill Verify the PJV and the BPV. F&A Deptt (Commercial Forward a copy of the BPV along Section) with a copy PJV to the cash and bank section to release of payment. File a copy of the following: F&A Deptt (Commercial PJV along with a copy of SRV Section) and supplier bills in the PJV file PJV serial number wise PJV, BPV and supplier bill in the suppliers file. For payment of BPV - follow the F&A Deptt cash and bank system. (Commercial Section)

Activity

Frequency invoice by F&A (Commercial)

Remarks

Within 1 day of receipt of invoice by F&A (Commercial) Within 1 day of receipt of invoice by F&A (Commercial)

Within 2 days of receipt of invoice by F&A Deptt (Commercial)

Documents - Records Document Title Bank payment Voucher Journal voucher Suppliers Ledger Advance ledger Purchase order Accounting Entries: For purchased of Oil: Oil purchases account To Oil suppliers Control Account Dr Cr Document Type I I R R I Frequency As and when As and when As and when As and when As and when Distribution

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Process: Freight payment Oil Process brief

Process no.: 10

This process deals with the transporters bill processing for oil (HFO / HSD etc.). Oil may be received by road or through railways. In case the freight is paid by the oil company, then the same is included in the invoice raised by the oil company. Oil received by rail is received on freight paid basis. The transporters are approved by the Oil company and the Oil company specified rates are payable for freight On processing the freight bills ensure that the freight bills are processed for the actual quantity of oil received and as per the approved rate list Departments / sections involved in the process F&A (Commercial) section / FOHP/ C&M

Procedure : Freight payment Oil S. No. 1. Person Frequency responsible Receive transporter bills along with Operation/ As and when a copy of the challans. Fuel Oil Handling Enter the transporters bill number Department against the respective SRVs in the transporters bill processing module. Generate a summary sheet giving the SRV number and LRs against each transporters bill. Authorise the transporter bill for payment and forward the same along with challans and summary sheet to the F&A department. Enter the transporters bill number in the transporters bill processing module. Carry out the following checks to process the bill: Activity Remarks The system should ensure that the SRV and challan number are not duplicated for a transporter bill.

Within a day of receipt

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S. No.

Activity The Operations/ FOH department have authorised the transporters bills The freight rate applied is as per the approved rate list The transporters bill amounts tallies with the amount calculated by the system Generate a Journal Voucher (JV) for processing the bill for the bill processed amount and generate a Bank payment voucher (BPV) for the amount payable to the transporter and supplier. Indicate the due date of payment on the BPV.

Person responsible

Frequency

Remarks

F&A Deptt (Commercial Section)

Within 1 day of receipt of invoice by F&A (Commercial)

Sign the JV and the BPV and forward the same to the competent authority as per IWA along with the SRV and suppliers bill. Verify and authorize the JV and Concerned BPV both the hard copy and in the official as per system. IWA Forward the authorised BPV along with a copy JV to the cash and bank section to release the payment. File the following: F&A Deptt (Commercial Section) F&A Deptt (Commercial a copy of the JV along with a Section) copy of SRV and supplier bills JV serial number wise a copy of the JV, BPV and supplier bill in the suppliers file. Payment of BPV - follow the cash F&A Deptt and bank system (Commercial Section)

Within 1 day of receipt of invoice by F&A (Commercial) Within 1 day of receipt of invoice by F&A (Commercial)

Within 2 days of receipt of invoice by F&A (Commercial)

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Documents - Records Document Title Freight Payment Note JV BPV Accounting Entries: Oil purchase Account To Transporters control Account Dr Cr Document Type I I I Frequency As and when As and when As and when Distribution F&A Commercial F&A Commercial Cash and bank

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Process: Receipt of Gas and bill processing Process brief

Process No.: 11

This process lays down the procedure for receipt of gas and processing of the suppliers bill. In a month, for the first fortnight, the bill is processed as per the standard quality and adjustment for the quality variation (if any) is made with the bill for the second quarter for the month as whole. For receipt of gas and processing of bills ensure the following: Meter readings are recorded on a daily basis Meter readings are taken jointly in the presence of representatives from both the parties (NTPC and GAIL) to avoid any disputes later In case the invoice pertains to the second fortnight, the adjustment for the bill of the first fortnight has been carried out The bills is processed for the actual quantity and quality of gas received as per the agreed rates. Calorific Value of gas supplied during the period is correctly calculated The rates are as per the rate list and other terms and conditions as per the agreement with GAIL

Departments / sections involved in the process Operations Department F&A Department

Procedure : Receipt of Gas and bill processing S.No 1 Person Responsible Enter the gas received (quantity and Operations quality) as per the joint reading in the dept. system Receive the invoice for the billing Operations period Generate a Gas Consumption Statement specifying the daily consumption of gas during the billing period. Ensure the following: Activity Frequency Daily Remarks

Upon receipt of invoice

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S.No

Activity Quantity and quality of gas received as per the invoice tally with gas consumption statement. Rate (basic, premium, rebate, etc.) is as per the terms of the contract with the supplier

Person Responsible

Frequency

Remarks

Forward the bills to the F&A dept along with a signed copy of the consumption statement Carry out the following to process F&A Deptt the bill: (Commercial Section) Check that the consumption statement has been approved by an appropriate authority as per the IWA Quantity and quality billed is as per the consumption statement In case invoice pertains to the first fortnight, bill is passed for the standard quality and adjustment for the quality difference is made in the next fort night The base rate for gas is as per the rates approved with the supplier. The premium and discount calculations, as applicable are arithmetically correct. Process the bill for payment.

Within 1 day of receipt of invoice

Generate the Journal Voucher and the F&A Deptt Bank payment voucher (BPV) for the (Commercial amount payable to the supplier. Section) Indicate the due date of payment on the BPV. Sign on both the copies of the JV and the BPV and forward the same along with the SRV and suppliers bill to the competent authority Verify and authorize the JV and BPV Concerned

Within 1 day of receipt of invoice by F&A Commercial Section

Within 1 day

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S.No

Activity both the hard copy and in the system. Forward the authorised BPV along with a copy JV to the cash and bank section to release the payment. File a copy of the JV along with a copy of SRV and supplier bills (JV serial number wise).

Person Responsible official as per IWA F&A Deptt (Commercial Section) F&A Deptt (Commercial Section)

Frequency of receipt of invoice by F&A (Commercial) Within 1 day of receipt of invoice by F&A (Commercial) Within 2 days of receipt of invoice by F&A (Commercial)

Remarks

File one copy of the JV, BPV and supplier bill in the suppliers file. Payment of BPV - follow the cash F&A Deptt and bank system (Commercial Section)

Documents - Records Document Title Daily reading register Consumption statement Invoice received from Gas Suppliers Bank Payment Voucher Journal Voucher Accounting Entries: Gas purchase Account To Gas suppliers control Account Dr Cr Document Type R O I Format FM/10 Frequency Daily Fortnightly As and when (currently once in 15 days) As and when As and when Distribution

I I

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Process: Issue of SIV by O&E department Process brief

Process no.: 12

This process deals with the preparation of SIVs for issue of coal and oil by the O&E department Consumption of fuel is to be measured as under: Coal - based on the weightometer readings. Oil - through flow meters and to cross verified with the changes in the storage tank levels Gas all receipts are taken as consumption and SIV is prepared for the quantity received and consumed Departments / sections involved in the process
O&E Department / F&A department

Procedure : Issue of SIV by O&E department S.No 1 Person Responsible Record the weightometer readings at Shift engineer the beginning of each the shift of the crushed coal going into the pulverizing mills for each boiler into the shift fuel consumption register. In case of oil, record the quantity of oil fired in the boilers as measured by flow meters or any other method / device. Enter the fuel consumption as per the Shift in above readings in the system Shift Charge wise/ fuel wise/ unit wise Generate a fuel issue statement for Suptd. (O&E) each unit from the system. Ensure that it tallies with the Fuel consumption register Approve the statement both in the system and the hard copy Forward a copy of the fuel issue Activity Frequency For shift each Remarks

Daily

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S.No

Activity

Person Responsible

Frequency

Remarks

statement to the Fuel Management Group / Coal co-ordination cell, Power Station Receive the sample analysis report Suptd. (O&E) from the laboratory regarding the calorific value of fuel consumed. Update the system for the coal quality consumed Generate a Store Issue Voucher (SIV) from the system for the fuel issued for the day for each of the units Forward a copy of SIV to the F&A Suptd. (O&E) Deptt Commercial section and a copy to the FMG

As when

and

Next day

Documents - Records Document Title Fuel Issue register Stores Issue Voucher Document Type I I Frequency Daily Daily PSL section Format Distribution

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Process: Physical verification of fuel stock Process brief

Process no.: 13

This process describes the accounting adjustments to be carried out on physical verification of fuel stock. Physical verification of oil Physical verification is to be carried out monthly on the basis of dip measurements. The stock as verified is to be compared with the book stock. Physical verification of coal Physical verification of coal shall be carried out as per the procedure provided in Appendix II. Physical verification of the coal stock shall be carried out quarterly and the consequential adjustment in the PSL is also to be carried out quarterly as per the guidelines issued by CC from time to time. The quantity of closing stock as considered for physical verification should take into account all receipts and issues upto the cut-off date/ time of verification For physical verification of fuel stock site to ensure the following: Physical verification is carried out as per the prescribed procedure The stock Verification Sheets are duly signed by the verification committee and approved by the competent authority No discrepancy in the stocks is written off unless approved by the competent authority In case of handling losses exceeding the norms, the excess loss is valued at the weighted average rate of the month and charged to the P&L account after approvals of the competent authority

Departments / sections involved in the process Inter-departmental Committee formed for the purpose of verification Procedure: Physical verification of fuel stock S. No 1 Activity Carry out the physical verification of the fuel stock Oil as per dip measurements Coal as per the procedure provided in Appendix I Person Responsible PV Committee Frequency Quarterly Remarks

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S. No 2

Activity Record the actual measurements and the physical stock as per verification on a Stock verification sheet (SVS). The SVS should be signed by all the Committee members Forward a copy of the SVS to the Fuel Management Group and the F&A Deptt (Commercial section) Determine the discrepancy in the fuel stock by comparing physical stock with the stock as per PSL (after ensuring that all receipts and issues upto the cut-off date are taken into account) and report the discrepancies to the Fuel Management Group / Operations Department Prepare a note to the appropriate authority (as per the provisions of IWA) for obtaining approvals of the discrepancy

Person Responsible PV Committee

Frequency As when and

Remarks

PV Committee/ F&A

As when

and

Fuel Management Group / Operations (for Oil) Receive the approval for adjusting F&Athe stock records. Commercial Generate the Adjustment SIV/ SRV for adjusting the book quantity and obtain approval of the competent authority as per the IWA.

As when

and

As when

and

Documents - Records Document Title Stock verification sheet (SVS) SRV/ SIV Document Type I O Frequency As and when As and when Distribution

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Accounting Entries Shortages on physical verification 1. 2. Normal losses (shortages) i.e. within the norms prescribed for handling losses Prepare an adjustment SIV for the quantitative adjustment to the PSL Abnormal losses i.e. losses in excess of the norms Shortages pending investigation and approvals Fuel shortage on physical verification pending investigation Dr Stock adjustment Coal Cr On receipt of approvals for shortages Shortages in stores written off fuel Fuel shortage on physical verification pending investigation Cr Excesses on physical verification Pending investigation and approvals Dr Cr Dr

Stock Adjustment Coal Fuel excess on Physical verification pending investigation On receipt of approval

Fuel excess on Physical verification pending investigation Excess on physical verification fuel

Dr Cr

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Process: Accounting for demurrages Process brief

Process no.: 14

This process describes the procedure to be followed to account for demurrage i.e. the charges payable to Railways on account of extra time taken for unloading of rakes than the time permitted as per the railways rules. Demurrage is to be provided and accounted for on receipt of the bill from the railways. In case of any dispute, an appeal for waiver of the claim is to be submitted to the railways. The claim waived is to be accounted for at the time of receipt of waiver. Demurrage is to be accounted for as per the guidelines issued by CC from time to time Departments / sections involved in the process Fuel Management Group F&A Department (Commercial section)

Procedure: Accounting for demurrages S. No 1 Person Responsible Receive the bill for demurrage from Fuel the railways and enter the details in Management Group the Demurrage Register (DR). Compare and verify the bill with the records maintained in the Railway Siding Register. Generate a report specifying the following (with respect to the rakes on account of which the demurrage bill has been raised): Rake wise timing in / out Time taken for unloading Time allotted for unloading and delay Reasons for delay (for internal purposes) Activity Frequency As when Remarks

and System should keep track of the cases where demurrage bills have been received, payments made, waiver request made and waiver received from Railways.

Obtain approvals on the bill by the concerned official as per IWA and forward to the F&A dept. for accounting and payment.

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S. No

Activity In case of any disputes, lodge an appeal for waiver of demurrage with the respective Railway authorities and enter the details of the same in the demurrages register. On settlement of the demurrage waiver request, enter the details of the waiver/ rejection of request in the demurrages register and intimate the same to the F&A Deptt (Commercial Section).

Person Responsible

Frequency

Remarks

Receive the duly approved F&A demurrages bill and process the bill. (Commercial)

As and when

Documents - Records Document Title Demurrage Bill Journal Voucher Accounting entries: For recognising the liability Purchase (Coal) A/c Dr. Freight Control A/c -Railways Cr. (for demurrages) On waiver of demurrage Reversal of the above entry to the extent of the demurrage waival approved by the railway authorities On payment Freight Control A/c -Railways (for demurrages) Bank Account Dr. Cr. Document Type I I Frequency As and when As and when Distribution

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Process: Process brief

Processing of Price Stores Ledger (PSL)

Process No.: 15

This process deals with the procedure to be adopted for processing of the Price Stores Ledger (PSL) PSL should be processed on a monthly basis. PSL is to be maintained for all types of fuel. The following documents are recorded in the PSL: Stores Receipt Voucher (SRV) Stores Issue Voucher (SIV) Adjustment document for each of the above document Freight Payment Notes

The quantity recorded in the PSL to be adjusted on account of the following: Deductions made for excessive moisture, ash content and stones etc. as and when admitted by the coal company. At the time of settlement of diverted outward rakes/ wagons with the diverted inward rakes/ wagons for the differential valuation. On bill processing, difference if any between the bill processed amount and the provisional amount Differences in the grade of coal as per the JAR Transit and handling losses

Valuation of issues The valuation of issues (SIVs) shall be based on the weighted average rate method as per the accounting policy and provisions relating to Fuel Price adjustment (FPA) calculations Prior to processing of the PSL ensure the following: All receipt till the end of the processing period have been valued and accounted for All issues till the end of the processing period have been accounted for Any adjustment entry required to be passed (due to physical verifications/ qualitative adjustment, etc.) has been passed

Re-opening of the PSL for a previous month is not permitted. Adjustments, if any relating to the previous month shall be made in the month in which the adjustments are made for updating the PSL. In respect of any negative stock position on processing of the PSL at the month-end forward the details to FMG to investigate the same

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Departments / sections involved in the process Finance and Accounts department O&M (Commercial) / FMG

Procedure : Processing of Price Stores Ledger (PSL) S. No. 1. Person responsible Obtain the cut off serial number of F&A Deptt the documents from the Operations (Commercial Department Section) Process the PSL and determine the weighted average rate as under: (Value of opening stock + Receipt value + Adjustments + Freight)/ (opening stock + Net Receipts + Adjustments as per the policy) Generate a Journal voucher to account for all receipts and issues and the adjustment documents relating to thereof Obtain the approvals of the competent authority as per IWA and update the system - as per the procedure for JVs. Documents - Records Document Title Stores Receipt Voucher / Issue Voucher Document Type O Frequency As and when Distribution F&A (Commercial) Activity Frequency Monthly Remarks

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Process: Calculation of Fuel Price Adjustment (FPA) Process brief

Process no.: 16

This Process describes the procedure to be followed for calculation of FPA. The FPA is to be calculated station-wise based on the formula prescribed in this regard using the following parameters: Gross Calorific Value (GCV) of fuel fired at the boiler front during the month PSL rate for the month for each type of fuel used by the Power Station. If a power station has consumed more than one type of oil (say both Heavy Furnace Oil and High Speed Diesel) then a combined weighted average rate is used for the oil consumed during the month as detailed below: Weighted average of oil consumed (rate of oil A * quantity of oil A) + (rate of oil B * quantity of oil B) Quantity of oil (A+B) GCV of oil consumed (GCV * quantity of oil A) + (GCV * quantity of oil B) Quantity of oil (A+B) The weighted average rate shall be certified by the F&A Deptt and GCV of the fuel by the Chemistry Deptt, every month and the same to be certified by the statutory auditor at the year-end as per the relevant tariff notification. Departments / sections involved in the process F&A Deptt (Commercial Section) O&E department

Procedure : Calculation of Fuel Price Adjustment (FPA) At the end of each month the F&A Commercial to generate a statement of the FPA and after obtaining approvals of the competent authority forward the same to the Finance and Accounts Deptt, RHQ for billing to SEBs. In case of gas stations, bills for the Minimum Guaranteed Off take (MGO) shall be raised, if any incurred, as per the relevant tariff notifications. Calculation on account of Monthly Operating Pattern Adjustment (MOPA) shall also be carried out and intimated to the RHQ for raising the bill.
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Documents - Records Document Title FPA statement Document Type O Frequency Monthly Distribution RHQ

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Process: Accounting for Carpet Coal Process Brief

Process no.: 17

This process provides the accounting treatment in respect of carpet coal i.e. coal which is not normally available for generation of power. Accounting treatment The carpet coal should be charged off to the coal consumption account. Loss on the carpet coal in the pre-commissioning period, should be retained as stock of coal and should be charged off to consumption in the year of operation of the unit. Loss on account of carpet coal is a one-time loss to the company and no further adjustment is required in the subsequent years unless and until a new coal stockyard is built or the existing stockyard is extended. Stock records A separate card should be opened in the PSL to indicate the quantity of the carpet coal. The same should be shown in the PSL at zero value. No other transactions shall be made in the card unless and until the quantum of carpet coal increases by the creation of new stockyards or by the usage of the carpet coal under specific circumstances. Physical verification of coal During the physical verification of coal, the measurement of coal stock is to be done after deduction of 0.6 meters from the ground level (depending on the clearance required for the coal reclaimer), which may be considered as the carpet coal. In case the measurement is taken from the ground level then the carpet coal quantity should be deducted from the total quantity as arrived at after physical verification. Handling Loss While determining the handling loss at the end of the year it should be ensured that the quantum of carpet coal has not been mixed up with the usable stock of coal that is reflected as the closing balance in the books of account.

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Appendix I Procedure for accounting and approval of handling and transit losses Handling Losses
The procedure for accounting and approvals of the handling losses shall be as under: The Project General Manager is empowered to make adjustments in the shortfall of coal to the extent of 0.6 percent of the total coal received during the financial year and then charge such adjustments to the coal consumption. Coal stock discrepancy of more that 0.6 percent but upto 1.2 percent would require the approvals of the Executive Director of the Region. Any coal stock discrepancy in excess of 1.2 percent but upto 1.5 percent to be reviewed by a committee consisting of representatives from the Corporate Centre and the plant. Based on the report of the committee the Chairman-cum-Managing Director may approve the adjustment of loss for the concerned power plant. Coal handling loss upto 1.5 percent of the coal received during the year will be charged off to consumption. If such loss exceeds 1.5 percent of coal received, a committee to be constituted by Director (Operation) and the recommendations will be put up to the Board of Directors for their approval. After such approval, loss of about 1.5 percent of loss will be charged to consumption as normal loss and losses beyond 1.5 percent will be written off in the accounts

Transit Losses
The procedure for accounting and approvals of the handling losses shall be as under:

(i)

In respect of distant power stations discrepancy in the coal receipt based on the weighment recorded at the power plant upto a maximum of 2 percent would be accepted as loss in transit For loss beyond 2 percent but less than 5 percent, a committee consisting of representatives from Corporate Centre and plant constituted by the Executive Director of the region would review and give its recommendations based on which the Executive Director of the region may accept the same

(ii)

(iii) Loss in transit beyond 5 percent would need to be investigated by a committee constituted by Director (Operation) consisting of representatives from Corporate Office and Plant (iv) Based on the recommendations of the committee as above, the matter would be taken up at an appropriate level with the Railways. (v) Loss in para (i) and (ii) will be charged to normal consumption. Losses over and above 5 percent as per para (iii) above are to be written off.

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Appendix II Physical verification of coal Procedure for volumetric measurement of coal 1. Fix 0.6 m from the ground level as carpet coal. All the coal stock measurements shall be based with reference to the level above the carpet 2. Level top of the coal stock as far as possible 3. Divide the coal yard into various zones of 50 m length 4. Measure the height of each zone at every 10 m intervals and determine the average height 5. Measure the width of the coal at the base and top of the stock at every 10m intervals and determine average width. 6. Compute the volume of each block 7. Record the readings in the stock verification register/ sheets 8. For bulk density measurement of coal stock, take a hollow box of 1m * 1m * 0.5m made from steel plates with sharpened edge at the bottom. 9. Hammer / push the hollow box at the mid point of top edge of each block. Attempt to determine the bulk density at various heights for arriving at a better average 10. Collect the coal from the box and weigh the same 11. Compute the bulk density for each zone 12. Record the readings in the stock verification register/ sheets 13. Compute the total coal stock from the volume data for each zone as per (6) and bulk density data as per (11) to arrive at the quantity in each zone 14. Add all the computed weights to get the total quantity of coal in the yard 15. Compute the coal stock from the cumulative coal receipt and coal consumed for the month from the coal delivery statement as per the weighment recorded at the loading point and coal issue vouchers as per the feeder readings 16. Determine the discrepancy in the coal stock and put up the details to the Head of O&M Group, GM (Projects)

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Format FM/01

Siding Register
Date Rake No of the day No of Wagons Placement Memo No of Rlys Placement Time Free Time Release Time by NTPC Release Memo No of NTPC Delay Time In minutes Remarks

Pro-forma of Release Memo by NTPC is enclosed

NTPC MGR DEPARTMENT RELEASE MEMO To The Chief Goods Clerk, Railways, NTPC siding, Project. Dear Sir,

Project

The ( BOXN/ BOXC/BOBR) (NO .) type loads placed in exchange yard at .Hours on .(date ) are unloaded and empties are placed in exchange yard at ..Hours on.(date) . The wagons numbers are given below:
S.NO Wagon No

This is for your information. Acknowledged: CGC,..Rly, NTPC siding,.Station. Note: 1) Empties received..Nos 2) Welded Doors Nos 3) Wagons Rejected..Nos Copies: Track Hopper Control Room MGR coal coordination.

Shift Supervisor/MGR,NTPC

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Format FM/02 NTPC MGR DEPARTMENT UNLOADING REGISTER Unloading date: S.NO RR NO./ Date Wagon type/ No Gross Wight MT Tare Weight MT Net Weight MT Invoice No of Coal Co Invoice Qty Short Qty Ref No of Claims lodged on Coal company/ Railways SRV NO .Station

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Format FM/03 NTPC MGR Department Coal Receipt Register Date Rake No Wagon Type and No Placement Memo No of Railway/ Placement Time Release Memo No of NTPC Bill NO of Coal Co Qty Invoice d Qty received and taken into stock Short ages in Qty SRV NO (Claim No/dt) for Missing (diverted out) wagons Station

Manual on Fuel Accounting

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Format FM/04 NTPC Supplier Ledger Fuel Supplier Name: Fuel Supplier Code: Date Source Inv Qty Invoice No/ Dt Initial Grade Final Grade Joint Analysis Report No/Date Dr/Cr Note No/Date Amount Dr Cr SRV NO / Date Remarks/ Station

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Format FM/05 NTPC FREIGHT LEDGER PARTY: .RAILWAYS Date Source Invoice No/ date RR NO/ Date Wagon No Amount Payable Amount Paid / claimed through WOC system Dr Claims NO/ Date for the claim lodged on railway Claim settlement Reference No / Date Station

Cr

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Format FM/06 NTPC Dr/Cr notes due from Coal Co towards Grade difference Supplier Name: Supplier Code: S.No Source Invoice No Supply date Billed grade Final Grade SRV NO/ Date Billed Qty Amount Due Dr Cr Station

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Format FM/07 NTPC OIL RECEIPT REGISTER Date & Time Source Invoice No & Date RR NO/ LR No & date Invoiced qty Whether Seals are in-tact at the time of receipt Receipt Qty Shortage Qty SRV No Remarks Station

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Format FM/8 NTPC Outstanding Diverted-in / Excess Wagons as on.. Source Unloading date SRV No Type of Wagon Wagon No/ Tanker No Remarks Station

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Format FM/09 NTPC Outstanding Diverted-out / Missing wagons as on Source Coal/ Oil company invoice No & Date RR No & Date Wagon No / Tanker No Wagon Type BOXN/ BOXC/ BOBR Coal type Normal/W ashed Qty MT/ KL NTPC Claim Ref No & Date Freight paid amount through WOC, if any Remarks Station

Manual on Fuel Accounting

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Format FM/10 NTPC O&M department Daily Gas/ Reading & Consumption Statement Station

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Format FM/MIR/02 NTPC MATCH DELIVERY STATEMENT Match Delivery arranged on .(date). Match Delivery No.. S. No RR No RR date Source No of Wagons Freight Amount Due Wagon No Excess/ Divertedin wagon No Unloading date Sourc e Remarks Station

1. 2. 3. 4 5. Match delivery has been arranged at NTPC..station on.. for .of Due Wagons/ Divertedout with available excess/diverted-in wagons on wagon-to-wagon basis. Claims involved in respect of these due wagons are treated as withdrawn in full and final settlement without prejudice to the legal right of both the parties --------NTPC --------Railways

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